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Assessing The Impact Of Infrastructure Quality On Firm Productivity In Africa: Cross-Country Comparisons Based On Investment Climate Surveys From 1999 To 2005

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Executive Summary

This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the Total Factor Productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and Information and Communications Technology (ICT). Microeconometric techniques to Investment Climate Surveys (ICSs) of 26 African countries are carried out in different years during the period 2002-2006, making country-specific evaluations of the impact of Investment Climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country the impact is evaluated based on 10 different productivity measures.

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